All Things An Exporter Should Know About e-BRC Onlineby Corpseed Ites Provide Legal Service to Business
eBRC(Electronic Bank Realization Certificate) or BRC is provided by banks to the exporter to claim advantages under the foreign trade plan's various systems. eBRC is a drive to advertise paperless trade, and also the DGFT has produced a digital network for Bank Realization Certification. Utilizing the eBRC system, banks can digitally transmit forex realization from financial institutions to the DGFT server. The use of digital certification protects this procedure. DGFT BRC is a certificate issued by Banks to confirm that the exporter has received payment against his buyer's export of goods.
The procedure which was in place previously for furnishing Bank Realisation Certification was manual. A merchant had to send BRC in physical application to the concerned Regional Authority of DGFT; the export transaction details as per BRC entered manually. This was undoubtedly a prolonged process that made claiming export incentives a challenging procedure.
DGFT introduced the eBRC module, an integrated platform that enables the digital transmission of Foreign Exchange Realisation Details from Banks directly to DGFT's server to promote paperless trade. This process is more secured by utilizing an electronic certificate.
Currently, with eBRC, an exporter doesn't need to go to his bank for Bank Realisation Certification, which has made the process of declaring export benefits and incentives from DGFT and other export companies easier. At present, there are 132 financial institutions for which DGFT is providing this facility.
How eBRC works?
Banks produce Bank Realisation Certification upon invoice of export proceeds. Then the Financial institution's Personnel can create an XML file with the information of BRCs or eBRCs, digitally authorize the file, and upload it on DGFT's web server daily or two times a day pre-determined regularity.
It requires to be kept in mind that Banks submit rupees equivalent of the realized forex based upon the exchange rate, which is specified by the Central Board of Import Tax and Customs (CBEC).
Once the XML data are uploaded, and the webserver has provided recognition for the same to the Bank, DGFT's module allows exporters to watch their eBRCs on DGFT's internet site.
How can an Exporter see the status of eBRC online?
There are some of the simple steps which an exporter needs to comply with to see the status of his eBRC Online:-.
· Go to DGFT's website and click under Services-eBRC, select "View, and print your eBRC."
· The exporter will then be taken to a web page named "e-BRC Details for Trade."
· Below, the exporter needs to complete his IEC Code and also IFSC Code of the Bank i.e IFSC Code should be of the bank where the payment from his overseas buyer will be realized.
· Next, he needs to click "Program Details".
· All e-BRCs uploaded by the bank will certainly be shown.
· An exporter can click "Print" on specific eBRCs.
What is the advantage of eBRC for an Exporter?
With the help of eBRC currently, there is minimal human handling and much less transaction price for granting export benefits to traders. DGFT is now getting information for shipping bills electronically through EDI ports; currently, with this adaptation with banks, it receives the foreign money realization details, too linked to every shipping bill. The details based on the shipping bill (FOB Worth of products exported) and eBRC (Final payment obtained against export) are matched to ensure that the worth at which incentive is to be supplied to the exporter can be validated.
In the case of EDI Delivery Costs, while applying for incentive online, a trader needs to connect the relevant shipping bill and eBRC. No hard copies are required to be submitted to DGFT for the same.
Some essential factors about eBRC & filing of incentives for an exporter:
· For the calculation of incentives, the value of export taken into consideration is realised value based on eBRC or FOB value as per Shipping Bill, whichever is much less.
· When applying under any scheme, an exporter must enter the Payment details, Insurance policy, product information, and shipping details.
· The exporter must examine the realised value reported by bank on eBRC; if there is a mistake, they need to get it changed by the bank.
· Suppose several products are in a shipping bill. In that case, the FOB value or realised value (whichever is much less) is proportionately dispersed among all the items based on a multiplication factor.
· This multiplication factor is the ratio between realised value and FOB value as per the shipping bill.
Multiplication Variable (M) = FOB Value realised in Rs. as per eBRC / FOB Value as per Shipping Bill
· Bank's commission must not be deducted from the realised value reported in eBRC.
How eBrc Use?
Information about transaction-level exports obtained by eBRCs is also shared with other government agencies. DGFT has signed MOUs with 14 state governments and two central government agencies for sharing this information. To strengthen the procedure of GST on Exports, DGFT has likewise authorized an MOU with GST Network (GSTN) for sharing foreign exchange realisation and Import Export Code information. This will undoubtedly make it easier to refine export associated deals under GST.
Created on Sep 14th 2020 07:31. Viewed 87 times.